Search found 9 matches

by scv
Sat Sep 12, 2020 12:23 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

Okay I tried again... I simulated rolling a ES Sep18'20 contract to Dec18'20. To simplify the calculations I assume today is the 17:th making the holding period a quarter of a year. The cost of making one future trade is $2.1 so total cost of transaction is $4.2 which I'll deem negligible. (I have ...
by scv
Sat Sep 12, 2020 12:19 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

Thank you for the education on this topic. Am I right in understanding that this strategy is particularly effective in a very low interest rate environment and that if risk free rates were more like, say, 4%, you wouldn't be doing this? I don't think you can make that conclusion. The cost of the ro...
by scv
Wed Sep 09, 2020 9:04 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

Okay I tried again... I simulated rolling a ES Sep18'20 contract to Dec18'20. To simplify the calculations I assume today is the 17:th making the holding period a quarter of a year. The cost of making one future trade is $2.1 so total cost of transaction is $4.2 which I'll deem negligible. (I have t...
by scv
Wed Sep 09, 2020 8:16 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

Thanks for all input. This is very helpful! I'm trying to grasp how to properly calculate roll costs. I tried to do a simulation today in IB but it actually looked like I would make money on the roll. Maybe it's because of the recent volatility in US or some other effect which I don't understand. I ...
by scv
Sun Sep 06, 2020 10:13 pm
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

I’ll update this post when I’ve had time to do some calculations on the trading costs and compare with foreign withholding taxes in an etf. But back to my original question. How to effectively get exposure to world-ex-US using the lowest number of funds as possible domiciled in Ireland or Luxembourg...
by scv
Sun Sep 06, 2020 3:51 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

I don't understand why you think it would be more cost effective to go that route though. By owning S&P futures I only have to pay the cost of rolling the contracts which shouldn't be too bad. I'm in Hong Kong and pay no capital gain taxes so as far as I understand futures would be cheaper than...
by scv
Sun Sep 06, 2020 3:47 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

Okay let me calculate the trading costs and see whether this is worth it. I was intending to own my exposure to world-EX-US with funds domicile in Ireland or Luxembourg.
by scv
Sun Sep 06, 2020 1:42 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Re: Any ex-US world ETF

If you're really trying to go down the route of avoiding the dividend taxes then you can buy ETFs that track the world index but use synthetics to obtain the total return that are not subject to those taxes. Amundi domiciled in Luxembourg offer these. I suspect this would be more cost and tax effic...
by scv
Sat Sep 05, 2020 3:29 am
Forum: Non-US Investing
Topic: Any ex-US world ETF
Replies: 23
Views: 2805

Any ex-US world ETF

Hi, I'm currently owning IWDA (MSCI World ETF domiciled in Ireland) for my world index exposure. This fund needs to pay 15% dividend withholding tax on the US portion of the yield. I was thinking whether I can eliminate the WHT completely by replacing the US market exposure with S&P futures cont...